Ezra Holdings' net profit up 177% to US$22.1m

The company's revenue also increased 114% to US$211.8m.

According to OCBC, Ezra Holdings' 2QFY12 results were within expectations. the company reported a 114% YoY rise in revenue to US$211.8m and a 177% increase in net profit to US$22.1m, such that 1HFY12 revenue and net profit both accounted for 52% of our full year expectations.

Here's more from OCBC:

Revenue increased in both the offshore support services and subsea services divisions in 2QFY12, due to contributions from an expanded vessel fleet and better performance from the AMC Group. Marine services, however, saw a slight decline of US$3.4m in turnover due to lower revenue recognized for engineering projects inVietnam compared to 2QFY11.

Not much surprises on the gross margins side

Offshore support services historically had gross profit margins of 25-30%, and we understand that this was lower at around 20-25% in the last quarter due to some off-hire vessels. As for subsea services, AMC turned in gross profit in 2QFY12, but we estimate a net loss for the quarter. Management is guiding for gross margins of about 12-15% for the subsea segment going forward.

Subsea vessels may be fully utilised in 2HFY12

Management expects that the group’s subsea vessels should be fully utilised in 2HFY12. Barring any hiccups in execution, we estimate that this is likely to be the case for the most of FY13 as well given its strong subsea order book which is in excess of US$1b. Hence looking ahead, the focus would be on execution of projects.

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